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TSMC's 8-inch Fab Production Utilization Declines

Published: Sep 07,2015

TSMC 8-inch Fab

TAIPEI, Taiwan - According to Taiwan’s Economic Daily News, for the first time this month, TSMC’s capacity utilization for 8-inch Fab was below full capacity. Moreover, the rate for 12-inch Fab t is decreasing because of the revised down orders.

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The reports said that, the rate of capacity utilization for TSMC 8-inch Fab was not at full capacity from the beginning of this month, thus the capacity utilization will be likely below 100%.

Meanwhile, the rate of capacity utilization for TSMC 12-inch Fab declines simultaneously. The preliminary preparation of monthly production capability of 50,000 pieces of Apple’s 16nm chips will slow down to revise down to 30,000 pieces. The new cutting price strategy has started to be implementing by second-tier foundries, the biggest price-cut is coming from GlobalFoundries.

The Analist said that, the decline of TSMC production utilization rate will likely force other foundries to rub orders by price-cutting action. The 4th Quarter this year might be the worst quarter for foundry.

(TR/Yiting Wang)

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